VII

REMEDIES

265

between nations will not conflict with the permanentinterests of the benefactor. 1

3. An International Loan

I pass to a second financial proposal. The require-ments of Europe are immediate. The prospect ofbeing relieved of oppressive interest payments toEngland and America over the whole life of the nexttwo generations (and of receiving from Germany someassistance year by year to the costs of restoration)would free the future from excessive anxiety. But itwould not meet the ills of the immediate present,—the excess of Europe 's imports over her exports, theadverse exchange, and the disorder of the currency.It will be very difficult for European production toget started again without a temporary measure ofexternal assistance. I am therefore a supporter ofan international loan in some shape or form, such ashas been advocated in many quarters in France ,Germany, and England, and also in the United States .In whatever way the ultimate responsibility forrepayment is distributed, the burden of finding theimmediate resources must inevitably fall in majorpart upon the United States .

1 It is reported that the United States Treasury has agreed to fund {i.e.to add to the principal sum) the interest owing them on their loans to theAllied Governments during the next three years. I presume that the BritishTreasury is likely to follow suit. If the debts are to be paid ultimately, thispiling up of the obligations at compound interest makes the position pro-gressively worse. But the arrangement wisely 0tiered by the United StatesTreasury provides a due interval for the calm consideration of the wholeproblem in the light of the after-war position as it will soon disclose itself.